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Big reservations over gas rules


Source: 31 July 2014

It is reported that those looking to restrain US gas and oil exports are offering the Australian gas market as the example of the way not to do it.

If that is the case, the debate in the US Congress might also be informed by, of all things, a report on micro-economic reform in Western Australia by the state’s independent infrastructure regulator.

While debate fumes over the domestic cost of Australia’s relentless march to pre-eminence in global seaborne gas trade, the WA Economic Regulation Authority has recommended that the state government abandon gas reservation in preference for open markets.

A powerful rump of Australia’s big energy users complain that Australia’s refusal to constrain gas exports is already driving excessively high energy costs and will end with the domestic gas market short of supply from 2017 when Gladstone’s $80 billion worth of LNG capacity starts ramping up to capacity.

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